Blame MP3 Players for the Flash Memory Shortage

Companies are increasing their production of flash memory devices. As a testament to this, they are either making new plants or converting DRAM production facilities to NAND. Keeping-up with demand will be a really big challenge which will be compounded when Apple begins producing its next generation of iPods

"Despite converting factories from DRAM (dynamic RAM) to NAND production, chip makers won't be able to keep up with such growth. So the market for NAND flash will experience a 5.8 percent shortage in the fourth quarter of 2006 and a 2.6 percent shortage in the first quarter of 2007, Gartner predicted."

If the shortage comes and demand continues to rise, the flash memory price reductions being experienced now might be short lived. Another way to look at it though is that it will open up new opportunities for small time manufacturers that could fill-up the need.

Source: Music Player Sales Drive NAND Flash Memory Shortage

Technorati tags: Flash Memory / NAND / Shortage / MP3 Players / iPod